Why might a main dealer have a car for months before selling
Discussion
daemon said:
GrandAndrew said:
In my experience with Peugeot the finance company will look to dispose of the vehicle as soon as possible, often through smaller auction sites. PSA Finance in our area deal with a relatively local and smaller auction house who dispose of their vehicles on a weekly basis, the auctioneers are even responsible for collection some of the time.
I'd say the cost of keeping a car sitting about, potential faults occurring, space, cars being damaged etc far out weigh any benefit in hanging on to them.
My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.
I'd say the cost of keeping a car sitting about, potential faults occurring, space, cars being damaged etc far out weigh any benefit in hanging on to them.
My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.
4941cc said:
Leasing companies and dealerships have to have somewhere to store return cars whilst they go through the remarketing process - cars aren't handed back at a dealership by a customer and on a forecourt fully prepped the next day. There's always lag.
Dealers also block buy and do deals on ex-lease stock so they can buy for example 20 320d M Sport autos in a variety of colours and mileages, for a total overall price. You wouldn't put all of them on the forecourt at once, especially where you've got half a dozen all the same colour - you prep and park one on site and store the duplicates, replenishing when the car on site sells, or sell directly from storage on spec, then prep it for handover.
Such cars will be in stock at least 90 days and will likely never leave the compound until they are either retailed or returned to auction for trade disposal, when the BCA transporter comes and collects them.
That's what lease companies do when they have large blocks of a particular model coming off lease at once, volume deals with dealerships and the dealers manage the trickle back into used market - overall having bought each unit cheaper than they would have got it by sourcing each car individually, made a profit on the first half sold, broke even on some and lost on a few others, so the average profit-per-unit of that transaction makes sense.
Standard business practice I imagine in most forms of retail of physical goods. Do supermarkets put all their inventory on the shelves at once? Or replenish as required from held stock, bulk bought to increase profitability?
Every single dealership you see has a storage compound and vehicles in it, either held, arriving from or going to trade auction/scrap. The new unregistered cars that you see out the back on dealership sites are usually customer sold units awaiting PDI and handover. Some may hold showroom replenishment vehicles on site too. But the bulk is offsite in places like the link above, farms, industrial units/compounds, airfields, other land that can't be sold for residential development. Cars are kind of large, so not easy to hide. They aren't hidden anywhere.
Exaclty. Theres lag between handback and resale and cars are processed through many different routes to "optimise" the price, however there isnt a situation whereby leasing companies are purposely mothballing say, 10,000 cars in a big compound somewhere with a view to creating an uplift in the market by forcing a shortage 6 months down the line.Dealers also block buy and do deals on ex-lease stock so they can buy for example 20 320d M Sport autos in a variety of colours and mileages, for a total overall price. You wouldn't put all of them on the forecourt at once, especially where you've got half a dozen all the same colour - you prep and park one on site and store the duplicates, replenishing when the car on site sells, or sell directly from storage on spec, then prep it for handover.
Such cars will be in stock at least 90 days and will likely never leave the compound until they are either retailed or returned to auction for trade disposal, when the BCA transporter comes and collects them.
That's what lease companies do when they have large blocks of a particular model coming off lease at once, volume deals with dealerships and the dealers manage the trickle back into used market - overall having bought each unit cheaper than they would have got it by sourcing each car individually, made a profit on the first half sold, broke even on some and lost on a few others, so the average profit-per-unit of that transaction makes sense.
Standard business practice I imagine in most forms of retail of physical goods. Do supermarkets put all their inventory on the shelves at once? Or replenish as required from held stock, bulk bought to increase profitability?
Every single dealership you see has a storage compound and vehicles in it, either held, arriving from or going to trade auction/scrap. The new unregistered cars that you see out the back on dealership sites are usually customer sold units awaiting PDI and handover. Some may hold showroom replenishment vehicles on site too. But the bulk is offsite in places like the link above, farms, industrial units/compounds, airfields, other land that can't be sold for residential development. Cars are kind of large, so not easy to hide. They aren't hidden anywhere.
New is a different kettle of fish because at times manufacturers have to overproduce, awaiting a reg change peak or similar, or to keep production lines running. New cars can easily sit around for 6 months awaiting someone wanting that exact spec combo. When they sit too long, they'll be bundled up and sold off to dealer groups as a bulk lot, often ending up as "pre-reg" cars.
I often would see dealers with big offsite compounds of new cars that they'd bought in or were simply in storage until they were sold. Used cars - any used cars that came in were either off to get refurbed off site if required and then on to the forecourt, or off to auction, or held to one side for trade buyers to view and bid on. It would have to be a severe shortage of forecourt space that would see a used car that was going to be retailed sitting around in a compound.
daemon said:
8V085 said:
That's a storage site mate, or shall I say it's an expansion of an existing storage site.
Ah... is this one of these "non disclosure" things you were talking about, where in actual fact its not what it says it is, but its a "storage facility" 
It's a storage site mate. It's been a storage site for years now. What part of motor trade are/were you in? Valeting?
http://www.bedfordaerodrome.com/ said:
Welcome to Bedford Aerodrome(...)
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
http://www.thurleighairfieldbusinesspark.co.uk/downloads/thurleigh-workshop-application-flyer.pdf said:
In addition the existing areas of hardstanding used by SMH will be expanded by an
additional 18 acres, in order to accommodate vehicle storage for SMH.
additional 18 acres, in order to accommodate vehicle storage for SMH.
8V085 said:
It's a storage site mate. It's been a storage site for years now. What part of motor trade are/were you in? Valeting?
Part of it is a storage facility for NEW CARS NOT EX LEASE ONES!!!http://www.bedfordaerodrome.com/ said:
Welcome to Bedford Aerodrome(...)
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
https://www.youtube.com/watch?v=WLdDUMPjwAM
"The runway is full of brand new unregistered cars ready to go to new owners"
https://en.wikipedia.org/wiki/RAF_Thurleigh
"The southern part is now known as Thurleigh Business Park, and includes the runway, which is currently used for the mass storage of new cars"
Clearly you cant separate simple information out? New cars are often in long term storage, used ex lease cars (whilst there may be a little lag) are refurbished and resold as soon as possible.
Edited by daemon on Wednesday 22 November 18:01
Back to the op,
Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
valiant said:
Back to the op,
Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
No it was the same branch (my local) - a long way from where the owner was. As well, the mileage not going up at all in 9 months just makes me a tad paranoid.Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
It's going in for some bits to be looked at; small stuff like trim I'd like replacing etc. It cost me over 30k and so I'll be getting answers. I've decided not to email and ask though; as I'd like to not give them opportunity to concoct any story. I want to be stood in front of him when I pose the question.
Simply; why was this car only just put on sale; when you've seemingly had it for nine months. And why has the mileage not gone up at all in that time...
daemon said:
8V085 said:
It's a storage site mate. It's been a storage site for years now. What part of motor trade are/were you in? Valeting?
Part of it is a storage facility for NEW CARS NOT EX LEASE ONES!!!http://www.bedfordaerodrome.com/ said:
Welcome to Bedford Aerodrome(...)
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
It is formed from the eastern 1100m of the original Royal Aeronautical Establishment (RAE) Bedford Ministry of Defence aerodrome, which featured a massive 2 mile long, 90m wide main runway. The remaining western end of the original runway is now used for intensive car storage and is not owned by MSV.
https://www.youtube.com/watch?v=WLdDUMPjwAM
"The runway is full of brand new unregistered cars ready to go to new owners"
https://en.wikipedia.org/wiki/RAF_Thurleigh
"The southern part is now known as Thurleigh Business Park, and includes the runway, which is currently used for the mass storage of new cars"
Clearly you cant separate simple information out? New cars are often in long term storage, used ex lease cars (whilst there may be a little lag) are refurbished and resold as soon as possible.
What else will your impeccable googling skills uncover I wonder? They failed to produce correct number of cars sold and registered as well the number of cars scrapped used in your original "absolute" analysis so am not holding my breath.
PS can you share with us what you did while you were in trade? Valeting? Car delivery? Receptionist?
8V085 said:
Yes, some random youtube video and wikipedia, the cornerstone of modern knowledge. Numbnuts, that facility is and has been used to store all sorts of cars, including cars that were taken in exchange during last scrappage scheme.
What else will your impeccable googling skills uncover I wonder? They failed to produce correct number of cars sold and registered as well the number of cars scrapped used in your original "absolute" analysis so am not holding my breath.
The original link you put up was for a refurbishment facility not a storage facility for SMH Fleet Solutions. Again, the clue is in the name there - SMH FLEET solutions, not SMH STORAGE solutions.What else will your impeccable googling skills uncover I wonder? They failed to produce correct number of cars sold and registered as well the number of cars scrapped used in your original "absolute" analysis so am not holding my breath.
The link from the motor trade website also refers to it as a refurbishment centre.
Yes there are other areas of that site for mass storage of new cars. It was also used for the scrappage scheme cars. None of that proves in any shape or form that lease cars are held in storage long term and drip fed back on to the market to create demand.
Now, maybe instead of being a denier of the above statement (which you are failing spectacularly at), you could have a read at some of the other posts on this thread that presumably you've glossed over, by people who are also experienced (and i'd say more experienced / current than me) who are saying exactly the same thing - finance companies, whilst there might be lag in the process, dispose of cars as soon as they viably can.
LDN said:
valiant said:
Back to the op,
Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
No it was the same branch (my local) - a long way from where the owner was. As well, the mileage not going up at all in 9 months just makes me a tad paranoid.Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
It's going in for some bits to be looked at; small stuff like trim I'd like replacing etc. It cost me over 30k and so I'll be getting answers. I've decided not to email and ask though; as I'd like to not give them opportunity to concoct any story. I want to be stood in front of him when I pose the question.
Simply; why was this car only just put on sale; when you've seemingly had it for nine months. And why has the mileage not gone up at all in that time...
We sold our 370Z GT to a big dealer group and it sat for an easy nine months. Sometimes they get the pricing wrong but will hold on for a long time before admitting such.
LDN said:
no worries; my skin is too thick for such posts to be bothersome. I took it as a joke really. Thanks to everyone for their ideas and possible reasons. I'll be asking them myself next week. daemon said:
The original link you put up was for a refurbishment facility not a storage facility for SMH Fleet Solutions. Again, the clue is in the name there - SMH FLEET solutions, not SMH STORAGE solutions.
There is no such thing as SMH STORAGE solutions. The original link linked to one and same things SMH Fleet Solutions who also do storage expand their site which also includes expanding storage. As it is mentioned in the article I linked originally.http://www.thurleighairfieldbusinesspark.co.uk/new-workshop.htm said:
In addition, the existing area of hardstanding used by SMH will be expanded by an additional 18 acres, in order to accommodate further vehicle storage.
As well as in the leaflet I linked in subsequent posthttp://www.thurleighairfieldbusinesspark.co.uk/downloads/thurleigh-workshop-application-flyer.pdf said:
In addition the existing areas of hardstanding used by SMH will be expanded by an
additional 18 acres, in order to accommodate vehicle storage for SMH.
When do you give in I wonder?additional 18 acres, in order to accommodate vehicle storage for SMH.
daemon said:
LDN said:
valiant said:
Back to the op,
Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
No it was the same branch (my local) - a long way from where the owner was. As well, the mileage not going up at all in 9 months just makes me a tad paranoid.Is your dealer part of a much bigger group? Could have been sat at a different branch where it was initially serviced but for some reason didn't sell and so has been punted around different branches in order to get a nibble.
When I bought my car, it had been sat a little while and was being slowly discounted and was going to be shunted up north when I turned up.
It's going in for some bits to be looked at; small stuff like trim I'd like replacing etc. It cost me over 30k and so I'll be getting answers. I've decided not to email and ask though; as I'd like to not give them opportunity to concoct any story. I want to be stood in front of him when I pose the question.
Simply; why was this car only just put on sale; when you've seemingly had it for nine months. And why has the mileage not gone up at all in that time...
We sold our 370Z GT to a big dealer group and it sat for an easy nine months. Sometimes they get the pricing wrong but will hold on for a long time before admitting such.
I will report back with what they say; not that I assume anyone is interested!
8V085 said:
There is no such thing as SMH STORAGE solutions. The original link linked to one and same things SMH Fleet Solutions who also do storage expand their site which also includes expanding storage. As it is mentioned in the article I linked originally.
EXACTLY!!! That was my point. You're saying they're a storage company and they're not. Its a Fleet Solutions company, and thats a state of the out REFURB site for them!If they were called SMH STORAGE solutions, then maybe you'd have a point, but their entire business model is around fleet management, NOT storage.
8V085 said:
When do you give in I wonder?
Clearly, they're using the space to manage cars through the refurb facility, and ready for onward movement to auction houses.I really dont get how you think this is the "smoking gun" that proves all finance houses are in some sort of cartel that manipulates prices by drip feeding cars to market over extended periods of time. Its clearly a state of the art refurb centre with facilities for cars to be handled through that process. It even has pictures of the 40,000sq ft buildings and offices being erected FFS. Why on earth would they need that if its a big storage site?? And 200 staff to do what? Man the perimeter in case people twig about this huge cover up?
Frankly, its banal. Stunningly banal.
LDN said:
It's possible... but this Land Rover dealer has a high turnover and I've been looking for a long time. As far as I'm aware; they only put it up for sale two weeks ago!
I will report back with what they say; not that I assume anyone is interested!
In between shooting-fish-in-a-barrel here, yes, i'd love to hear why. I will report back with what they say; not that I assume anyone is interested!
Sometimes a dealer will have a car in for 90 days, have to move it on due to group policy, swap it with another dealer then in another 90 days time swap it back in if it hasn’t sold.
Sometimes you can have what you perceive to be the perfect car but for whatever reason it just doesn’t move on.
Whatever the reason, as long as it’s what you want and is performing as it should then there’s really nothing to worry about.
Sometimes you can have what you perceive to be the perfect car but for whatever reason it just doesn’t move on.
Whatever the reason, as long as it’s what you want and is performing as it should then there’s really nothing to worry about.
GrandAndrew said:
My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.
My two ex-lease Mercedes cars resurfaced on sale after 2 months. One 100 miles away at main dealer, other at the dealer where I serviced it and it took them 2 months to get rid off. Being damaged at dealer didn't help, otherwise my friend would get it. Car only did 150 miles between December and March while in the system. Audi resurfaced after 6 weeks, about 70 miles from where I left it and is at some small trader but it has extra 500 miles on a clock since I dropped it off. It's on sale 3K below purchase price offered to me by WVFS.
PenelopaPitstop said:
GrandAndrew said:
My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.
My two ex-lease Mercedes cars resurfaced on sale after 2 months. One 100 miles away at main dealer, other at the dealer where I serviced it and it took them 2 months to get rid off. Being damaged at dealer didn't help, otherwise my friend would get it. Car only did 150 miles between December and March while in the system. Audi resurfaced after 6 weeks, about 70 miles from where I left it and is at some small trader but it has extra 500 miles on a clock since I dropped it off. It's on sale 3K below purchase price offered to me by WVFS.
Then you’re relying on the dealer to prep the car again, upload it to net and photo it.
I don’t think the times you’re talking about are unrealistic, all I was saying is that I don’t think finance companies and manufacturers actively sit on stock, I don’t think they can afford to.
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